NTC MEMORANDUM CIRCULAR NO. 05-05-2002, MAY 13, 2002, May 13, 2002

RULES AND REGULATIONS ON THE PROVISION OF HIGH -SPEED NETWORKS AND CONNECTIVITY TO IT HUB AREAS

National Administrative Register May 13, 2002
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Pursuant to
the provisions of Republic Act No. 7925 (Public Telecommunications
Policy Act), Executive Order No. 546, series of 1979, Republic Act No.
8792 (E-Commerce Law) and consistent with the government’s goal to
develop and maintain a viable, efficient, reliable, and universal
telecommunications infrastructure using the best available and
affordable technologies; as a vital tool to nation building and
development and in order to stimulate the growth and development of the
information and communications technology (ICT) the following rules and
regulations are hereby promulgated:

I.          DEFINITION OF TERMS

1.         The following terms shall be defined as follows:

a)         Commission — refers to the National Telecommunications Commission

b)         Information
Technology — includes matters concerned with the furtherance of
computer science and technology, design, development, installation and
implementation of information systems and applications.

c)         High Speed Networks — Networks that have a capacity of at least 2.048 Mbps.

d)         IT
Hub Areas — Specific areas declared by the Board of Investments,
Department of Trade and Industry (BOI-DTI) where industries that require
high speed networks, services and connectivity are located.

II.         COVERAGE

2.         This circular shall apply to the provision of high speed networks and connectivity in the following IT hub areas, namely:

a.         Pasig-Ortigas Business District

            Bounded by EDSA, Ortigas Avenue, 500 meters East past Meralco Avenue and Shaw Boulevard

b.         Makati City (Fort Bonifacio Global City and RCBC)

            Bounded by Sen. Gil Puyat Ave., EDSA, Kalayaan Ave., Lawton Ave., Mckinley Road, EDSA, AS Arnaiz Ave. Pasay Road) and Chino Roces (Pasong Tamo)

c.         UP-Ateneo-Eastwood, Quezon City

            Bounded by Don Mariano Marcos Ave., Tandang Sora Ave., Valerie Drive, Katipunan and CP Garcia Ave., Aurora Blvd., Xavierville Ave. and Katipunan Ave.; strategically situated at the centerpoint of the C-5 Road (Libis, Quezon City)

d.         Alabang-Parañaque-Filinvest (Northgate CyberZone)

            Occupies over 18 hectares within the Northgate Business District of Filinvest Corporate City located in Alabang, Muntinlupa.  Bounded by the cities of Las Piñas, Parañaque and Pasay

e.         Subic and Clark

            Subject
to existing agreements and with the exception of the area covered by
the Subic Bay special Economic and Freeport Zone, which shall continue
to be regulated by the Subic Bay Metropolitan Authority, the Subic-Clark
corridor will cover the area identified in the Subic-Clark Alliance
Development Program, i.e., combined land area of 51,653 hectares and a
corridor composed of 12 municipalities; Bataan (Dinalupihan, Hermosa); Pampanga (Angeles City, Porac, Floridablanca, Mabalacat); Tarlac (Bamban, Concepcion, Tarlac City); Zambales (San Marcelino)

f.          Cebu Business District-AsiaTown IT Park

            Covers a combined land area of approximately 24 hectares located in Lahug, Cebu City

g.         University Belt Area, Manila

            Bounded by Tayuman, Rizal Ave., McArthur (Sta. Cruz) Bridge, Lawton (area along Pasig River), Intramuros area, Bonifacio Drive, Roxas Blvd., Vito Cruz, South Superhighway, Pres. E. Quirino, Nagtahan, Alfonso Ave., and Gov. Forbes.

h.         Davao City (specific areas to be identified)

            For
new areas to be declared IT hub areas, the Commission shall conduct
public hearings and consultations not earlier than (6) months but not
later than nine (9) months from any new declaration.

III.       FREE ZONES

3.         Any
duly enfranchised public telecommunications entity shall be allowed to
provide high speed networks and connectivity to the areas covered in
Sec. II(1) of this circular

4.         The rates shall be deregulated.  The
Commission shall be informed of the initial service rates and of any
change thereof not later than five (5) days prior to implementation.

IV.       LOCAL EXCHANGE NETWORKS AND SERVICES

5.         PTEs
not duly authorized to provide local exchange carrier services in the
areas where the IT hub areas are located shall not be allowed to
install, operate, and maintain local exchange networks thereat.

6.         Providers
of high speed networks, services and connectivity in the IT hub areas
shall not be allowed to offer local exchange services, national and
international long distance (voice) services except those that are duly
authorized to provide local exchange service, national long distance
service and/or international long distance service.

7.         Subscribers/customers
of high speed networks, services and connectivity in IT hub areas shall
not be allowed to resell telecommunications services.

V.        REPORTS, PERMITS AND LICENSES

8.         Providers
of high speed networks and services in IT hub areas shall at all times
possess valid permits and licenses for all radio facilities.

9.         Quarterly
reports on the high speed network and facilities in IT hub areas shall
be submitted to the Commission not later than fifteen (15) days after
the end of each quarter.

VI.       INSPECTIONS

10.       The
Commission may conduct inspection of the facilities of the network and
service providers in IT hub areas at any time during office hours.

VII.      SANCTIONS

11.       Violations of this circular shall be dealt with in accordance with existing laws, rules and regulations.

VIII.     SEPARABILITY CLAUSE

12.       Any
portion or section of these rules which may be declared invalid or
unconstitutional shall not affect the validity of the other remaining
portions or sections.

IX.       REPEALING CLAUSE

13.       All
existing memoranda, circulars, rules and regulations inconsistent with
the provisions of this memorandum circular are hereby repealed or
amended accordingly.

X.        EFFECTIVITY

This
Memorandum Circular shall take effect fifteen (15) days following its
publication in the Official Gazette or in a newspaper of general
circulation in the Philippines; Provided, that at least three (3)
certified copies thereof be filed with the University of the Philippines
Law Center.

Adopted: 13 May 2002.

(SGD.) ELISEO M. RIO, JR.
Commissioner
(SGD.) KATHLEEN G. HECETA
Deputy Commissioner
(SGD.) ARMI JANE ROA-BORJE
Deputy Commissioner